Before issuing any options on Capdesk you will need to create an option plan.
You can do this by clicking on the “Options” tab -> “Plans” -> green button “Add Plan”.
Note: If you can't see the "EQUITY AWARDS" tab, you may need to go into "Settings and Add-ons" and tick "Options Addon" and click "Save"
Creating an Option Plan
“USE SHARES” (mandatory)
This section determines the option grants come from.
“Directly from Incentive Pool” - the standard plan. An incentive pool is an allocation of shares underlying the plan from which payment of awards are made. You can find out more about how to create an Incentive Pool on Capdesk here:
“Authorised specifically for this plan” - a portion of the pool. A certain percentage of the incentive pool allocated to your plan (e.g. 5% of incentive pool for EMI 2)
“Unauthorised” - non-incentive shares outside the pool.
"Issued" - if the shares are already issued to a shareholder who will be satisfying the awards on exercise.
“NAME” (mandatory) - the name of the plan (e.g. EMI / CSOP / Unapproved etc.). This is important as you will need to fill in and match the same option plan name when you create your option grants; either manually on Capdesk or in the “security_plan” column in your option import file.
“SHARE CLASS” (mandatory) - a share class is a designation applied to a specific type of security such as common stock. You can find out more about how to create an Share Class on Capdesk here: https://capdesk.zendesk.com/hc/en-us/articles/115003642069-Share-classes
“TYPE” (mandatory) - the type of option plan. It can match the “NAME” of the plan (e.g. EMI / CSOP). Use ‘Other’ for unapproved plans or other schemes you may have.
“AUTHORITY REFERENCE” (non-mandatory) - A reference to a plan provided by the authorities. Can be left blank.
“TERMS AND CONDITIONS” (non-mandatory) - Fill out this section if you have any particular terms or conditions that your plan requires. Can be left blank.
“DOCUMENTS AND NOTES” (non-mandatory):
- “NOTE” - this is where you can write comments about specific conditions of the option grant for the stakeholders and administrators to view.
- “DOCUMENTS” - An uploaded document that impacts the terms and conditions of the plan. Usually an Option Plan, Board Resolution or Shareholder Resolution. Once you’ve successfully uploaded the document you need to press “Add document” for it to be added.
"TERMINATION RULES" (non-mandatory):
- Used when terminating online grants. When starting the termination process a rule can be used to define the exercise period of the termination. Those rules can be seen as templates, as the exercise period of the termination can be customised before starting the process.
Once you’ve created your plan, you need to click on “Save” in order for it show up in the “Option Plan” page.